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  Agenda Item   24.    
City Council Meeting
Meeting Date: 02/15/2022  
FROM: Bill Gallardo

Subject:
Acceptance of Relinquishment of Project Approvals, Rescission of City Council Resolution Nos. 2021-009, 2021-010, and 2021-011, and Vacation of Project of Approvals for a Proposed Raising Cane's Restaurant with Drive-Thru at 255 East Imperial Highway, in the C-P (Commercial Professional) P-D (Precise Development) Zone
RECOMMENDATION
Staff Recommends that the City Council take the following actions:
 
  1. Adopt of Resolution No. 2022-019 to accept Raising Cane's Restaurants' relinquishment of project approvals, rescind City Council Resolution Nos. 2021-009, 2021-010, and 2021-011, and vacate the City Council's approval of a proposed restaurant with drive-thru at 255 East Imperial Highway, in the C-P (Commercial Professional) P-D (Precise Development) Zone. 
BACKGROUND/DISCUSSION
On December 8, 2020, the Planning Commission voted 4-1 to approve an application from Raising Cane’s Restaurants (“Raising Cane’s”) for:  (1) a Conditional Use Permit (“CUP”) to amend the existing CUP issued in 1988 for the Gaslight Square property located north of Imperial Highway, between Flower Avenue and Orange Avenue, to allow a drive-thru restaurant; (2) Precise Development Plan review; and (3) a CUP for signage to construct and operate a new retail eating establishment with a drive-thru located at 255 East Imperial Boulevard (the “Project”). The Gaslight Square property is owned by One Berry LLC (“One Berry”).

On February 2 and February 16, 2021, the City Council considered an appeal of the Planning Commission’s approval of the Project.  The City Council voted 3-2 to deny the appeal and to approve the Project through adoption of Resolution Nos. 2021-009, -010, and -011 (the “Project Approvals”).

On March 24, 2021, Safer Avenues for Everyone, Diane and Max Stites, Kari Windes, and Mary Martinez (collectively, “Petitioners”) filed a lawsuit challenging the Project Approvals in an action titled Safer Avenues for Everyone, et al. v. City of Brea and Brea City Council, et al., Orange County Superior Court Case No. 30-2021-01192037-CU-WM-CXC.  The City has been indemnified by Raising Cane’s for legal fees, costs, and expenses associated with the lawsuit as required by the Project Approvals.

Raising Cane’s has decided to not proceed with the Project and a settlement agreement (Attachment B) has been reached to resolve the lawsuit.  The agreement is a compromise of disputed claims, and is not an admission or adjudication of wrongdoing or liability by any party. 

On February 7, 2022, Raising Cane’s submitted a letter (Attachment C) disclaiming any interest in the Project Approvals and supporting their rescission by the City.  Although not a party to the settlement agreement, One Berry also has disclaimed any interest in the Project Approvals and consented to their rescission.
FISCAL IMPACT/SUMMARY
There is no direct fiscal impact from rescission and vacation of the Project Approvals. 
 
RESPECTFULLY SUBMITTED:
William Gallardo, City Manager
Prepared by: Steven Flower, Deputy City Attorney
Concurrence: Terence Boga, City Attorney and Jason Killebrew, Community Development Director
 
Attachments
ATTACHMENT A - Resolution 2022 -
ATTACHMENT B - One Berry, LLC Letter
ATTACHMENT C - Raising Cane

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